Important Notice Regarding Alleged Project Pegasus Restructuring Misrepresentations That Cost Helen of Troy Investors Millions
NEW YORK, June 10, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP notifies investors in Helen of Troy Limited (NASDAQ: HELE) that a class action lawsuit has been filed on behalf of shareholders who purchased securities between April 24, 2024, and October 8, 2025. Find out if you qualify to recover losses. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.
Helen of Troy shares lost $24.68 per share in a single session, a 27.7% decline, after the company slashed its full-year revenue outlook by over 20%. The company later recorded a $414.4 million goodwill impairment tied to decelerating revenue growth tied toa decline of $7.04 (22.7%) on July 10, 2025. Finally, the share price faltered another $6.90 as adjusted earnings per share fell 51%. The lead plaintiff deadline is August 3, 2026.
The Alleged Project Pegasus Methodology
The consumer goods restructuring market is littered with programs that promise savings but deliver disruption. Helen of Troy launched Project Pegasus in fiscal year 2023 as a "global restructuring program that focused on both efficiency and effectiveness," projecting $75 million to $85 million in total estimated savings. The lawsuit contends that throughout the Class Period, management repeatedly claimed Pegasus was generating "fuel" for reinvestment and organic growth while the company actually lacked the resources and budget to achieve those targets.
How Pegasus Allegedly Affected Reported Financials
The complaint alleges the following regarding Helen of Troy's restructuring claims:
- Management touted Pegasus as "instrumental" in transforming Helen of Troy from a holding company into a "true global operating company" while internal execution was faltering
- The company maintained savings estimates of $75 million to $85 million even as implementation challenges mounted at its Tennessee distribution center
- Earnings per share collapsed 49% year-over-year in Q1 FY2025, suggesting the promised efficiencies were not materializing
- A $414.4 million goodwill impairment was ultimately disclosed, attributed to continued decelerating revenue growth
- The CEO who spearheaded Pegasus departed suddenly after only 14 months, with the company citing "underperformance in recent years" and seeking turnaround experience in her replacement
The Restructuring Gap Factor
As alleged in the lawsuit, the disconnect between Pegasus promises and operational reality grew wider over multiple corrective disclosures. First-quarter FY2025 results revealed a 49% EPS decline. By first-quarter FY2026, net sales had fallen 11% and adjusted EPS had shrunk nearly 60%. The company's own interim CEO later conceded Helen of Troy had become "too matrixed, too slow, and at times disconnected from each other and the marketplace."
Submit your information to join this case or call Joseph E. Levi, Esq. at (212) 363-7500.
"This case presents important questions about restructuring program disclosure obligations in the consumer goods sector. When a company anchors its entire growth strategy to a specific initiative and repeatedly assures investors that initiative is on track, shareholders are entitled to accurate information about whether internal resources actually support those claims." -- Joseph E. Levi, Esq.
ABOUT LEVI & KORSINSKY, LLP -- Over the past 20 years, Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders. The firm has extensive expertise in complex securities litigation and a team of over 70 employees. For seven consecutive years, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report. Applications to serve as lead plaintiff must be filed by August 3, 2026.
Frequently Asked Questions About the HELE Lawsuit
Q: What is the HELE class action lawsuit about? A: A securities class action has been filed against Helen of Troy Limited (NASDAQ: HELE) alleging materially false and misleading statements between April 24, 2024, and October 8, 2025. Shares fell approximately 27.7% after the truth was revealed, causing significant losses for shareholders.
Q: Who is eligible to join the HELE investor lawsuit? A: Investors who purchased HELE stock or securities between April 24, 2024, and October 8, 2025, and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.
Q: How much did HELE stock drop? A: Shares fell approximately 27.7%, a decline of $24.68 per share, after the first corrective disclosure on July 9, 2024. Additional drops of 22.7% and 25% followed subsequent revelations in July and October 2025.
Q: What do HELE investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at jlevi@levikorsinsky.com or (212) 363-7500. No immediate action is required to remain eligible as a class member.
Q: What if I already sold my HELE shares, can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: What if I missed the lead plaintiff deadline? A: The deadline applies only to investors seeking lead plaintiff appointment. Class members who miss it can still participate in any settlement or recovery.
CONTACT:\
Levi & Korsinsky, LLP\
Joseph E. Levi, Esq.\
Ed Korsinsky, Esq.\
33 Whitehall Street, 27th Floor\
New York, NY 10004\
Tel: (212) 363-7500\
Fax: (212) 363-7171
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SOURCE Levi & Korsinsky, LLP
